One-glance verdict
Undervalued
$49.06 our estimate vs market $31.04
Wall Street consensus: $36.50 (-25.6% lower than our fair-value estimate)
37% below our estimate, below the bear case
Fundamentals snapshot
Intrepid Potash, Inc.
IPI · NYQ · Basic Materials · Agricultural Inputs
Current price
$31.04
52-week range
$22.55 - $50.34
Market cap
$417.70M
Balance sheet
Healthy
38.24x Strong cushion
Net cash $181.75M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 17.1% last year.
- Reward Returns 3.1% on equity, ahead of 16% of its peers.
- Risk Stock trades 72.0% above its 5-year average P/E.
- Risk Operating margin compressed from 30.5% to 2.5% over 3 years.
What this company does
Intrepid Potash, Inc.
Intrepid Potash, Inc. sells things like fertilizer ingredients (potash and Trio, a specialty fertilizer), salt, and water to farms, industries, and oil companies. Their money mainly comes from selling these products, with fertilizer ingredients being a big part of that. This matters because their sales are tied to things like farming needs and oil drilling activity.
How the company got here
Intrepid Potash, Inc. was founded in 2000 and is based in Denver, Colorado. The company was established to produce and market potash and langbeinite (marketed as Trio) in the United States. Over the years, it has grown to become a significant player in the fertilizer and industrial minerals market, adapting its offerings to meet diverse customer needs. Its history is rooted in the extraction and processing of essential minerals from underground deposits.
What it actually does
Intrepid Potash produces and sells a variety of mineral products that are essential for agriculture, industry, and animal nutrition. Think of them as providing key ingredients that help crops grow, keep animals healthy, and support various industrial processes. Their products include fertilizers that provide nutrients to plants, salts used for everything from de-icing roads to animal feed, and specialized chemicals for the oil and gas industry.
Potash
This segment is all about producing and selling muriate of potash, a vital nutrient for plant growth that farmers use as fertilizer. It's also used in animal feed as a nutrient supplement and in industrial applications, like in the fluids used for drilling oil wells. This is a core part of Intrepid's business, providing a fundamental input for agriculture and other sectors.
Trio
Trio is a specialty fertilizer that Intrepid produces, offering a unique combination of three essential nutrients – potassium, sulfate, and magnesium – all in one easy-to-use particle. This product is designed to provide a balanced nutritional profile for crops, helping them grow healthier and stronger. It represents a more specialized offering within the fertilizer market.
Oilfield Solutions
This part of the business provides products and services specifically for the oil and gas industry. They supply brines, which are highly concentrated salt solutions used to help with activities like well workovers and completions. They also offer metal recovery salts, which are used in various industrial processes. This segment caters to the specific needs of energy exploration and production.
What management is betting on now
Intrepid's management is focused on maximizing the value of its existing mineral assets and expanding its market reach. A key priority is to efficiently produce and market its core products like potash and Trio, ensuring they meet the growing demand from the agricultural sector. They are also likely focused on optimizing operations within the Oilfield Solutions segment to capitalize on opportunities in the energy market, while exploring ways to enhance profitability across all business lines.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-13.95M
FY2024 Q4
$1.44M
FY2025 Q1
$2.65M
FY2025 Q2
$35.81M
FY2025 Q3
$-11.73M
FY2025 Q4
$-1.18M
FY2026 Q1
$18.03M
FY2026 Q2
$25.91M
Revenue
—
Net income
$15.58M
Diluted EPS
1.17
Operating cash flow
$34.37M
Free cash flow
$25.91M
Fetching…
Sources
Revenue
—
Net income
$7.42M
Diluted EPS
0.56
Operating cash flow
$23.17M
Free cash flow
$18.03M
Fetching…
Sources
Revenue
—
Net income
$-429.00K
Diluted EPS
-0.03
Operating cash flow
$8.91M
Free cash flow
$-1.18M
Fetching…
Sources
Revenue
—
Net income
$3.75M
Diluted EPS
0.28
Operating cash flow
$-3.99M
Free cash flow
$-11.73M
Fetching…
Sources
Revenue
—
Net income
$3.26M
Diluted EPS
0.25
Operating cash flow
$39.94M
Free cash flow
$35.81M
Fetching…
Sources
Revenue
—
Net income
$4.61M
Diluted EPS
0.35
Operating cash flow
$10.92M
Free cash flow
$2.65M
Fetching…
Sources
Revenue
—
Net income
$-207.05M
Diluted EPS
-16.09
Operating cash flow
$7.56M
Free cash flow
$1.44M
Fetching…
Sources
Revenue
—
Net income
$-1.83M
Diluted EPS
-0.14
Operating cash flow
$-4.34M
Free cash flow
$-13.95M
Fetching…
Sources
Is it cheap or expensive?
Fair value $49.06 vs current price $31.04
Wall Street consensus is the average analyst price target: $36.50 (-25.6% lower than our fair-value estimate).
Our most-likely fair value is $49.06 a share — about 58.1% above today's price of $31.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $181.8M - more cash than debt. Interest coverage 38.2x.
Net debt
$-181.75M
Interest coverage
38.24x
Intrepid Potash, Inc.'s profit covers its interest bill about 38.2 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
IPI
BASELINE
Intrepid Potash, Inc.
Total debt $3.24M Interest coverage 38.24x This is the baseline the peer rows are being compared against.
Total debt $774.60M Interest coverage 1.15x -97% vs IPI Carries about 33.2x less debt cushion than IPI.
Total debt $574.70M Interest coverage 4.28x -89% vs IPI Carries about 8.9x less debt cushion than IPI.
Total debt $6.08B Interest coverage 4.47x -88% vs IPI Carries about 8.6x less debt cushion than IPI.
Total debt $3.61B Interest coverage 16.38x -57% vs IPI Carries about 2.3x less debt cushion than IPI.
Total debt $12.73B Interest coverage 5.31x -86% vs IPI Carries about 7.2x less debt cushion than IPI.
What you should know
The case for and against IPI
3 Rewards
2 Risks
Rewards
-
Revenue grew 17.1% last year.
-
Returns 3.1% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 72.0% above its 5-year average P/E.
-
Operating margin compressed from 30.5% to 2.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
32.67x
Forward P/E
22.49x
P/B
0.80x
P/S
1.73x
EV/EBITDA
3.59x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
27.8%
Operating margin
2.5%
Net margin
10.9%
ROE
3.1%
ROA
2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
6.33x
Quick ratio
4.13x
Total debt
$3.24M
Total cash
$184.99M
Growth
How the business has been compounding
Revenue TTM
$241.58M
Revenue 5Y CAGR
-4.0%
EPS TTM
0.95
EPS 5Y CAGR
-45.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$62.45M
Free CF TTM
$25.54M
FCF margin
10.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2012-12-13